Tuesday

Saginaw-based Nexteer Automotive reportedly plans IPO in Hong Kong

Nexteer Automotive Corp., the U.S. auto-parts maker controlled by China’s biggest aerospace company, may seek as much as $500 million in an initial public offering in Hong Kong, said two people with knowledge of the matter.

Nexteer, based in Saginaw, has applied to the Hong Kong stock exchange to sell shares and may start the IPO in the second quarter, said the people, who asked not to be identified because the information is private.

Nexteer was owned by General Motors Co. until 2010, when it was sold to Pacific Century Motors, a company backed by the Beijing municipal government. Aviation Industry Corp. of China., the country’s biggest aerospace company, now owns 51 percent of Nexteer through unit AVIC Automobile Industry Holding Co., according to the Chinese company’s website.

The 51 percent stake in Nexteer was transferred to AVIC from Pacific Century in March 2011, and Beijing’s municipal government still owns a minority stake, according to the AVIC website. A spokesman for Nexteer couldn’t be reached outside of regular business hours.

BOC International Holdings Ltd. and JPMorgan Chase & Co. are arranging the share sale, the people said.